We read the tea leaves on the data thats driving down the market this morning. Cbs and time warner are on the move both after reporting earnings. Were going to dig into those quarters. Well also talk to cbss chief executive. Tim cook calling the u. S. Government dysfunctional on mad money with jim. Well hear from the apple ceo and dig in on what last nights primary results may mean. Stocks are poised to open lower a day after falling to their lowest levels in three weeks amid concerns about slowing economic growth. Speaking of the economy, data from adp shows the private sector added 156,000 jobs in april, that is below consensus and marks the smallest increase in three years. 156, we were looking for 196. And everybody wants to know, jim, what this might mean for friday. Yeah. I think that were back into a mode which says this roving bull market that weve had in cyclicals maybe give that a break. Go back into the clorox market. Remember, it is just bull, bear, bull, bear, we rotated out of all these companies that were just kind of the soft Goods Companies and went very hard into if you have to use an analogy freeport and suddenly we find out that was wrong that only works when things are better and when the dollars weaker and when oils going higher. So we have a mixed picture now of i want to pull back and say, you dont want the fed to tight if youre a bull, you dont want the fed tight. And these numbers say, hey, fed, you should wait and brexit. I know i find it really boring. Its going to get less boring. Yes. Exactly. Its going to happen right after the fed meeting. And i think everybodys going to be saying are you crazy . If you dont know the results of brexit you cant do anything. When i see our election and see everyones kind of pulling back from being one world, maybe theres a brexit ground swell. There may be. I wonder on that note though given we now have a likely nominee of the Republican Party in mr. Trump, do you think people have been focused on it . Or when will they start to really focus on the uncertainty that any election brings regardless of whether its the republican or democratic candidate. Does that not happen until the fall, really, in terms of people really looking at what the implications may be . Yeah, i think that theres a lull. I mean, there will be conventions and speeches, but i think there was a little bit more of a foregone conclusion than the media wanted to admit throughout this period. But i would say that this is a moment where we go back to earnings. The companies that reported good numbers yesterday despite the fact that we had big futures pull down. You saw cvs report a very good number and the stock went up. Thats cvs charlie victor, not the one were going to talk to today. And you saw clorox up. That was a terrific quarter. Im saying gravitational pull on soft good stocks, gravity really did work yesterday and thats part and parcel of the new rotation. Were going to see companies that beat on the top line today, twx. Yeah. Cbs. Priceline. And then zoetas comes out another company saying guidance is better because of the lightning dollar headwind. Thats what pfizer did yesterday. A spinoff of pfizer, maybe great minds think alike there. I just think that were these are all companies, pfizers, these dont need a strong economy. Think about it i know it seems ridiculous we could go looking for biden in freeport and chesapeake last week and then today say what we really want are these Consumer Product companies and we like media. So it is just one after another after another. When i look at what time warner and cbs are saying, theyre saying, hey, listen, we got oversold. And were good. Thats true. Time warner is very good. Lets move onto that actually. Better than expected quarterly numbers, always adjusted operating income grew to a record 2 billion. Cbs also well ahead of street estimates ad sales driven by political spending, super bowl helped boost quarterly revenue. 10 , doubledigit top line growth at cbs. I mean, i know they have the super bowl, thats a big number. Thats awesome. By the way, to put in contrast its 3 at time warner. So well have im sure a lot to talk to Leslie Moonves about. Phenomenal was used twice in the call. Yes, hes very excited about the up fronts. This is cbs, that they are very well positioned and they will sell more inventory than they did last year when he claims that they pulled back and waited for the scatter. So leslleslie is probably looki back a bit. Of course all of this mr. Redstone, the national his competent and whether and when that trust will take over. But the numbers themselves at cbs of which by the way mr. Moonves is also chairman. Right. Were really quite strong. Quite strong. Talking about even if you back out the super bowl was really terrific. Shift in dollars, one of the most interesting things was how about the kind of subtle shift saying digital, you think digitals great, of course digital is a little miscounted, but you need digital in order to augment us. But its really the return of broadcast. Although their Digital Product is going to have star trek. In production today. Wow. Theres a big all cbs all access is what they call it. I read the corner and went winning team, i want to join in. Its great. Having worked there already its like a winning team when i worked there. Radio being spun out like outdoor. It was a perfect quarter. They bought back a lot of stock now. 500 million worth of stock. Thats a lot. You see the way they shrunk over the last few years. Never getting a high eps number. No Revenue Growth. They have it. That 10 number is something. Even with the addition of the super bowl. We ought to just have them on the show. Okay, lets do that. Lets do that. Time warner numbers also were not bad. Theyre pretty good. Calls going on right now. There are a couple of things i can share with you. Best quarter Revenue Growth for turner in almost three years. Domestic sub Revenue Growth on track to be in the low teens for the rest of the year. Advertising up a solid 5 saying again the Conference Call for time warner going on right now despite fx head winds, of course those not quite as strong. Scatter pricing continues to be up well into double digits and they expect total Revenue Growth to be in the mid to high single digits. That also from time warner, so well see advertising. Political of course adds to that as we know. Thats a very good point. Thats a little onetime. But i do say these guys both say content is king. Game of thrones figures in time warner, game of thrones is loved in hbo. And showtime with cbs and our colleague. Of course it cost them some money too because it was very expensive to ramp up for it. Cbs theyre talking about winning the whole demographic. They do like the thursday night Football Games. The reason why im spending more time is just if you take a couple months ago these were the disasters. This was all taking place on a week where the new fronts are taking place in the hulus of the world are making their pitch, the latest buzz word is not cord cutter but cord never. Have you heard this . Oh, yeah. 18yearolds who have never had a cable box in their house. Well, talk to some of the younger people in our office or anybody you may run into whos lets call it 25 and below they to carls point have never had a cable connection. And many will say, well, when you start a family, when you have more people in the household, the economic value that will be presented to you by the bundle will be such that you will choose to do so. Im not as sure. Once you have that habit of never having that video connection, its not clear to me that youre going to somehow one day decide you need it. Plus the proliferation of all of these different bundles over the top give people that opportunity. So this overhangs we can sit here and talk about 10 Revenue Growth and its great and 3 at time warner and they can tell us going to be on every platform. The world is changing very quickly. You dont think that les made a very strong case that you have to have the Number One Network . That you have to be watching the Number One Network . I thought he made a strong case. But whats the demographic of that network . Do you feel you need to watch the good wife . When im in it. I think well ask les when we see here but my takeaway was all access, showtime, streaming will beginning to make a significant contribution. I agree. When do we not think of them as a Television Network . Right. I also feel its kind of a throwback. Look, theyve made a comeback. People are starting to come back more. Nfl does figure in over and over. Of course it does. Without a doubt sports programming figures importantly for cbs and then of course the ncaa and the nba on tnt. Yeah, those are important components of their programming. I still wonder though in this world that we are headed into, slowly but with great certainty where younger people as they get older are not going to have the bundle anymore in the way that we do, whats going to be part of it. And whether or not that economic value that goes to the content companies will be the same it is right now. What happens if espn adds a viewer. Adds who . Adds a viewer. Are you suggesting thats going to happen . Im just suggesting this seems to be the rebirth of time warner, which didnt we pronounce them wasnt time warner dead . I mean, i went by a cemetery i always hold my breath theres the time warner tombstone. Honestly, i remember when jeff was saying great america. Forgot. Thank you. It was stuck at 60 and he was saying this is ridiculous. It was, it was ridiculous. The market is telling you it was. The stock up 14 this year. Ill take that. Yeah, i bet you will. You look at time warner, look at cbs and say people are going back to watching tv and these cordnever people, good luck. And you dont think the political cycle is masking any of this . Cnn. Local is pretty good for cbs too. Who was good . Local. I thought you said merkel. I was going to say urkel. Whatever happened to urkel . Where is that guy . I dont know. I never watched that show, i have no idea what show it was but i remember nothing gets past him. When we come back tim cook using one word to describe the government. Stick around to hear what he told jim. Take another look at the premarket. Nasdaq now within 1 of correction. That level is 47. 08. Well watch that when we return. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing they found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. I think government in general has gotten quite dysfunctional in the u. S. And some other countries as well. And so what that does, i believe, is put more responsibility on the everyday citizen and companies to help promote change and improving things. And i dont mean to play a government role, but its not just government who can change things. Thats tim cook sounding off on the government last night on mad money with jim. A day after the journal did a page one story about benioff. Im so glad you mentioned that. That piece was fantastic. What youre hearing when you see in ceos its like, geez, maybe i have to be more like benioff or what tim cook just said. Benioff is people dont know mark he started by tweeting to try to stop an indiana law. The heat when you even mention which side he is on just distracts the point of view of what tim cook and benioff are trying to do, which is influence change and just saying its no longer the government because the government is abdicated. When he says dysfunctional is abdicated from anything. Howard schultz has also been quite outspoken in certain areas. Yes, he has. I do wonder with some of these ceos all of whom either control their company or have significant say or incredible long string of success, but what is what are a boards thoughts when the ceos out there on something . And whats the communication like . Raises the ante. Youve got to deliver the quarter so big or else why are you spending any time on that issue . Thats what its very interesting. Remember when Doug Mcmillan came out i think some degree at walmart against an indiana law that im not going to give the specifics of because i dont want to make this about the law itself, but he joined mark benioff, maybe through tweeting, maybe through a the business guys overrun and then say you may not act at the super bowl and the reason is remember whos an advertiser. Theyre about money and we control the money and whos going to go where. Its happened in georgia, North Carolina and other states. On apple itself people said his appearance on mad money was desperate. Whatd you think of that . You know, i saw that i was like desperate . Then he goes to the 1,400 desperate ceos have come on mad money over a period of 11 years. I mean honestly, okay, look the stock first of all, do you know apple has had 47 declines of the same magnitude . 47 declines. Of what of 12 decline . As opposed to just thinking about the days. I think tim cook hes changed many ways about how he deals. I think he just felt like its not a bad time to tell people that the futures bad and not as bad as people think, the values there and inexpensive stock. I think the idea that hes desperate just has to do with the idea that you think that people dont change. You just think he only talks when hes really just trying to talk his stock up. Cramer bounce, no. And im saying that said this morning watch the morning show and i love that show, im just saying i think he felt like, look, let me be more control of the narrative. And i think a lot of it has to do with the Conference Call than what happened. Because if you read the Conference Call theres two Conference Calls. Theres the what tim cook has to say and then theres the questions from the analysts. And the questions from the analysts are almost entire like now that youre a value stock, now that youve run out of gas, now that trees you want that Conference Call to control then all you say is, you know what, we are done. And i think hes trying to get beyond the analysts. He does care about wall street, because the Conference Call was a great call because they made the quarter and then some stuff about hong kong and china and slow down. And then analysts who they may have buys on it, they should have sells on it given those questions. They should just own it. I dont know what theyre afraid of, but just own your negativity. Say, listen, im really negative. These are apple cord cutters. They want to cut the cord. Yeah. Are they cord nevers or cord cutters . You dont like the cord nevers, do you . The cord nevers, no. Reading his quote in the New York Times. Whos given him the hardest time on iphones. Happens to be the most rigorous and i make that point because tonys been around for so long. You dont want to go against tony. Thats how good he is. But he gave a quote to the New York Times which basically said, listen, glory days are over. Tim cook is talking about a Service Revenue stream that i completely agree with. At one point i feel like i was ahead of these guys, hey, listen, man, the Service Revenue stream i keep seeing how much im paying you and i dont know im paying you and i dont even care. I dont care how big it is because i have to have it. You ever lose your pictures . Yes. Yeah. Not a good feeling. If i lost my pictures, i have tremendous pictures of me and my father, it would just be a disaster. Of course it would. So i pay whatever. Fine, right . The music. Im a member of the family. I like the music plan. The revamping it as we speak. Yeah, they didnt need to but i like the watch. One day were all going to wear the watch. Okay. Were going to wear it. Fitbit reports tomorrow. I think they want to take back the health and fitness. They are really about health. Tim cook talked about that. And he also ran the autism commercial last night that was amazing, you know, for those who have that terrible disease. Apples trying to solve that. Were going to talk more about their music revamp a little later on. But desperate . Come on. Well get the opening bell in a few moments. Well count down to that with cramers mad dash. One more look at this premarket. Futures down an implied 80 points. Were back in a minute. music plays throughout uh oh. Whats up . Does nobody use a turn signal anymore . Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. The mad dash. Its hump day. We got about six minutes before the opening bell. Were going to talk a little zillow. Call me spencer. Yes, spencer. Ill be spencer for a moment. So this was a remarkable quarter. And it put to rest a lot of issues. I now look at the arc of what happened, david, they bought trul ya. And it was trulia at the time bad action. The government delays some of these acquisitions. During the delay trulia had a lot of problems. By the time it finally closed, ras had a lot of problems. A few transactions currently use them and yet this is my favorite line, according to google trends more americans now search for the word zillow than for the words real estate. So zillow, kleenex, google, spencer should be very proud. He should be. Im not sure where he is. I dont know where he is either. A victory lap around the set. Geez, this would be his moment. And you think this is sustainable . Yes, di do. I actually think the numbers are quite good. I think trulia was a real issue, but now i think they did one buys number two. And you immediately expect there to b